XAI Octagon Floating Rate & Alternative Income Trust Declares its Monthly Common Shares Distribution of $0.070 per Share

Rhea-AI Summary

XAI Octagon Floating Rate & Alternative Income Trust (NYSE: XFLT) declared a monthly common share distribution of $0.070 per share, payable December 31, 2025, to shareholders of record on December 15, 2025 (ex-dividend December 15, 2025). The distribution amount is unchanged from the prior month.

The Trust notes distributions may be paid from net investment income, capital gains, and/or a return of capital; tax breakdowns will be reported on Form 1099 after year-end. The Trust seeks stable monthly distributions but warns distributions can exceed GAAP net investment income and future payments are not guaranteed.

Positive

• Monthly distribution maintained at $0.070 per share
• Payable date set for December 31, 2025
• Record and ex-dividend dates both on December 15, 2025

Negative

• Distributions may include return of capital, reducing tax basis
• Final taxable characterization unknown until 2025 tax filings
• No assurance future distributions will remain unchanged

Insights

Portfolio Income Analyst

XFLT declared a steady monthly common-share distribution of $0.070, payable December 31, 2025.

The trust maintains a monthly payout equal to the prior month, indicating distribution stability rather than a change in cash flow policy. The announcement notes distributions may include net investment income, capital gains, or a return of capital, and that final tax characterization will appear on Form 1099 after the 2025 year-end.

The key dependency is the Trust's taxable income versus GAAP income and compliance with distribution and excise-tax rules; distributions can be a return of capital which reduces shareholder tax basis. Monitor the Trust's year-end tax characterization on Form 1099 and any board statements before or at December 31, 2025 for clarity on whether distributions are funded by income or return of capital.

CHICAGO, Dec. 01, 2025 (GLOBE NEWSWIRE) -- XAI Octagon Floating Rate & Alternative Income Trust (the “Trust”) has declared its regular monthly distribution of $0.070 per share on the Trust’s common shares (NYSE: XFLT), payable on December 31, 2025, to common shareholders of record as of December 15, 2025, as noted below. The amount of the distribution represents no change from the previous month's distribution amount of $0.070 per share.

The following dates apply to the declaration:

Ex-Dividend Date		December 15, 2025
Record Date		December 15, 2025
Payable Date		December 31, 2025
Amount		$0.070 per common share
Change from Previous Month		No change

Common share distributions may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust’s common shareholders on Form 1099 after the end of the 2025 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust’s distributions, please visit www.xainvestments.com.

The Trust’s net investment income and capital gain can vary significantly over time; however, the Trust seeks to maintain more stable common share monthly distributions over time. The Trust’s investments in CLOs are subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States (“U.S. GAAP”), and, as a result, there may be significant differences between the Trust’s GAAP income and its taxable income. The Trust’s final taxable income for the current fiscal year will not be known until the Trust’s tax returns are filed.

As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute to common shareholders by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made to use the Trust’s fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.

The common share distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder’s tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder’s potential gain, or reduce the common shareholder’s potential loss, on any subsequent sale or other disposition of common shares.

The distribution shall be paid on the Payment Date unless the payment of such distribution is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern, or to comply with the applicable terms or financial covenants of the Trust’s senior securities.

Future common share distributions will be made if and when declared by the Trust’s Board of Trustees, based on a consideration of number of factors, including the Trust’s continued compliance with terms and financial covenants of its senior securities, the Trust’s net investment income, financial performance and available cash. There can be no assurance that the amount or timing of common share distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of common share distributions in the future.

The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.

The Trust’s common shares are traded on the New York Stock Exchange under the symbol “XFLT”.

About XA Investments

XA Investments LLC (“XAI”) serves as the Trust’s investment adviser. XAI is a Chicago-based firm founded by XMS Capital Partners in 2016. XAI serves as the investment adviser for two listed closed-end funds and an interval closed-end fund. The listed closed-end funds, the XAI Octagon Floating Rate & Alternative Income Trust and XAI Madison Equity Premium Income Fund both trade on the New York Stock Exchange and the interval fund, Octagon XAI CLO Income Fund is available via direct subscription and through select broker/dealers and wealth management platforms.

In addition to investment advisory services, the firm also provides investment fund structuring and consulting services focused on registered closed-end funds to meet institutional client needs. XAI offers custom product build and consulting services, including development and market research, sales, marketing, and fund management.

XAI believes that the investing public can benefit from new vehicles to access a broad range of alternative investment strategies and managers. XAI provides individual investors with access to institutional-caliber alternative managers. For more information, please visit www.xainvestments.com.

About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services firm providing M&A, corporate advisory and asset management services to clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.

About Octagon Credit Investors
Octagon Credit Investors, LLC (“Octagon”) serves as the Trust’s investment sub-adviser. Octagon is a 30+ year old, $33.8B below-investment grade corporate credit investment adviser focused on leveraged loan, high yield bond and structured credit (CLO debt and equity) investments. Through fundamental credit analysis and active portfolio management, Octagon’s investment team identifies attractive relative value opportunities across below-investment grade asset classes, sectors and issuers. Octagon’s investment philosophy and methodology encourage and rely upon dynamic internal communication to manage portfolio risk. Over its history, the firm has applied a disciplined, repeatable and scalable approach in its effort to generate attractive risk-adjusted returns for its investors. For more information, please visit www.octagoncredit.com.

XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.

Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust’s webpage at www.xainvestments.com.

This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.

NOT FDIC INSURED		NO BANK GUARANTEE		MAY LOSE VALUE

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Media Contact:

Kimberly Flynn, President
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com

FAQ

What is XFLT's declared distribution amount for December 2025?

XFLT declared a monthly distribution of $0.070 per common share for December 2025.

When is XFLT's December 2025 distribution payable and what is the record date?

The distribution is payable on December 31, 2025 to shareholders of record on December 15, 2025 (ex-dividend December 15, 2025).

Will XFLT's December 2025 distribution change from November 2025?

No; the declared distribution of $0.070 per share is unchanged from the prior month.

Could XFLT's distribution be a return of capital for shareholders?

Yes; distributions may be paid from net investment income, capital gains, and/or return of capital, which would reduce a shareholder's tax basis.

When will XFLT report the tax characteristics of the 2025 distributions?

The Trust will report the specific tax characteristics to shareholders on Form 1099 after the end of the 2025 calendar year.

Does XFLT guarantee future monthly distributions at the same level?

No; future distributions are declared by the Board and are not guaranteed and may be suspended or changed.